The Role of Online Reviews in Shaping Consumer Pre-Purchase Evaluations of Durable Goods

Abstract

The e-commerce industry has developed so quickly, that people's way of shopping for products, assessing their values and comparing different options has changed. Online information is a growing source of consumer-generated information, especially for durable goods which are typically more expensive, used for longer, and more uncertain in terms of product performance. This paper explores the impact of online reviews on consumers' pre-purchase assessment of durable goods products. It primarily examines the impact of attributes of the review on consumers' perception of the product quality and their consideration of doing the purchase, e.g. credibility, relevance, comprehensiveness, rating patterns, review volume, and positive or negative valence of the reviews. This study also examines the role of online reviews in the pre-purchase information evaluation phase, as they affect consumer trust, perceived risk and decision confidence. Online reviews offer consumers information about what others have purchased, what they thought and felt, and what they saw as strengths and weaknesses of the products, which can help them compare options, diminish information uncertainty, and build expectations for the product's performance. Meanwhile, issues around false reviews, biased opinions, too much information and rating errors could diminish the trust in review information. The study thus delineates the nature of online reviews as both information and social cues, which can affect the cognition assessment of durable goods prior to purchase. This will help the field of consumer behaviour and digital marketing literature to better understand the impact of review-based information on the pre-purchase evaluation of products. The study also provides practical suggestions for online retailers, manufacturers, and e-commerce platforms to create more transparent and credible review systems and to promote consumers' informed buying process.